Lufax Holding Ltd (LU, Financial) has experienced a notable fluctuation in its stock price over the recent months. The company's market capitalization stands at $2.52 billion, with the current stock price at $4.39. Over the past week, the stock has seen a decline of -2.97%, yet this short-term dip contrasts with a significant 64.73% surge over the past three months. According to the GF Value, which is currently at $12.54, Lufax Holding Ltd is considered Significantly Undervalued. This valuation is consistent with the assessment from three months ago, when the GF Value was slightly higher at $13.07, still indicating that the stock was Significantly Undervalued at that time.
Introduction to Lufax Holding Ltd
Lufax Holding Ltd operates within the credit services industry, providing a personal financial services platform in China. The company focuses on personal lending and wealth management solutions, catering to the needs of small business owners, salaried workers, and the middle class and affluent population in China. Lufax's platform is divided into two main hubs: the Retail Credit Facilitation Hub and the Wealth Management Hub. These hubs are designed to address the substantial unmet demand for personal financial services in the Chinese market. 
Assessing Lufax's Profitability
The Profitability Rank of Lufax Holding Ltd is currently at 5/10, reflecting a moderate level of profitability within the industry. The company's Return on Equity (ROE) is 0.97%, which is better than 29.1% of 512 companies in the credit services industry. Furthermore, Lufax's Return on Assets (ROA) stands at 0.29%, surpassing 31.28% of 537 companies in the same industry. Over the past decade, Lufax has maintained profitability for 6 years, which is more favorable than 33.85% of 514 companies. 
Growth Trajectory of Lufax Holding Ltd
The Growth Rank for Lufax Holding Ltd is 3/10, indicating a lower growth trajectory compared to other companies. The 3-Year Revenue Growth Rate per Share is 5.20%, which is better than 51.03% of 486 companies in the industry. The 5-Year Revenue Growth Rate per Share is more impressive at 12.90%, outperforming 70.9% of 433 companies. However, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at -14.23%, which, while better than 0% of 98 companies, suggests potential challenges ahead. The 3-Year EPS without NRI Growth Rate is -13.60%, yet this is still better than 20.26% of 390 companies. The 5-Year EPS without NRI Growth Rate shows a positive change at 4.70%, surpassing 45.45% of 286 companies. Looking forward, the EPS Growth Rate (Future 3Y To 5Y Est) is expected to be a robust 70.94%, which is better than 95.45% of 22 companies. 
Notable Shareholders in Lufax Holding Ltd
Several significant holders have invested in Lufax Holding Ltd, demonstrating confidence in the company's potential. Baillie Gifford (Trades, Portfolio) holds 6,077,224 shares, representing a 1.06% share percentage. Ron Baron (Trades, Portfolio) follows with 4,606,220 shares, accounting for 0.8% of the shares. Jim Simons (Trades, Portfolio) also has a stake in the company with 2,445,994 shares, equating to 0.43% share percentage. These investments by well-known investors and firms may signal a positive outlook on Lufax's future performance.
Competitive Landscape
When comparing Lufax Holding Ltd to its competitors, it holds a middle ground in terms of market capitalization. Upstart Holdings Inc (UPST, Financial) has a market cap of $2.13 billion, slightly lower than Lufax. On the other hand, Qifu Technology Inc (QFIN, Financial) has a higher market cap at $3.31 billion, while Navient Corp (NAVI, Financial) is valued at $1.88 billion, which is less than Lufax's market cap. These comparisons provide context for Lufax's market position relative to similar companies in the credit services industry.
Conclusion
In summary, Lufax Holding Ltd's current valuation status suggests that the stock is Significantly Undervalued, with a GF Value of $12.54. The company's stock performance has been impressive over the past three months, with a 64.73% increase, despite a recent weekly dip. Lufax's profitability metrics, such as ROE and ROA, are better than a significant portion of its industry peers, and it has maintained profitability for the majority of the past decade. Growth prospects present a mixed picture, with strong future EPS estimates contrasting with a projected decline in total revenue growth. The confidence of significant holders like Baillie Gifford (Trades, Portfolio), Ron Baron (Trades, Portfolio), and Jim Simons (Trades, Portfolio) may further bolster investor sentiment. Finally, Lufax's market position is competitive, with a market cap that holds its own against close competitors in the credit services sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
